Israel and the Vatican have reached an initial agreement on the Holy See's assets and tax debts in Israel during a successful meeting between Deputy Foreign Minister Daniel Ayalon and the Church;s representatives in Rome.

Sources in Ayalon's entourage told Ynet that according to the draft agreement, the Vatican will not pay property tax on its cemeteries, orphanages and places of worship, but will pay hundreds of thousands of shekels a year in tax for the rest of its assets. (Roni Sofer)